GLOBAL FINANCIAL SYSTEM
DefinitionThe global financial system (GFS) is the financial system consisting of institutions and regulators that act on the international level, as opposed to those that act on a national or regional level. The main players are the global institutions, such as International Monetary Fund and Bank for International Settlements, national agencies and government departments, e.g., central banks and finance ministries, private institutions acting on the global scale, e.g., banks and hedge funds, and regional institutions HISTORY OF FINANCIAL GLOBALIZATION

The history of financial institutions must be differentiated from economic history and history of money. In Europe, it may have started with the first commodity exchange, the Bruges Bourse in 1309 and the first financiers and banks in the 15th–17th centuries in central and western Europe. The first global financiers the Fuggers (1487) in Germany; the first stock company in England (Russia Company 1553); the first foreign exchange market (The Royal Exchange 1566, England); the first stock exchange (the Amsterdam Stock Exchange 1602). Milestones in the history of financial institutions are the Gold Standard (1871–1932), the founding of International Monetary Fund (IMF), World Bank at Bretton Woods, and the abolishment of fixed exchange rates in 1973. |

Massive growth have been noticed in global economy in the last couple of years, and in the field of technology, more precisely in transport and communications there was a silent revolution which made the globalization of finance an obvious choice. The International Monetary Fund (IMF) and World Bank are the two international institutions of finance which were set up to endorse world trade to keep up with the growth of Financial Globalization. During the mid-1970s, the emerging market economies did not experience much of cross-country financial flows. The rate improved during 1980s and 1990s, while in the year 1997 it reached its best. But then it had declined rapidly due to economic and financial catastrophe of the Asian and Russian countries and gradually global capital flows was completely reduced. Instead, in the early 1990s, Financial Globalization inflated noticeably and capital from developed countries to the developing countries started flowing in. From 1973 to 2005, the rate of world trade increased at a great deal. It continues to grow, and in the year 2005, the GDP of world hit 42%. ROLE OF GLOBALIZATION AND THE INTERNATIONAL FINANCIAL SYSTEM First, with respect to our domestic economies, the level of understanding about the role of finance is very limited. It is not easy to establish intuitively the positive linkages between the activities of Wall Street and the activities of Main Street. For example, we have been asked hundreds of times over the past 30 years or so to explain the connection between deposits in banks or purchases of equities and the Economist's concept of investment, in the sense of savings and investment as they are recorded in the national income accounts. Many Economists are yet to come up with a satisfactory one-sentence answer. Second, and still in the context of our domestic economies, even for those with some intuitive feel for the role of finance in a market economy, the visceral feeling among those who borrow money or take on debt is that those who lend or manage money are rapacious by nature. The local banker receives a certain degree of respect in his community, but one is hard pressed to find expressions of fondness or warmth for large financial institutions, their representatives, or their leaders, in this or any other country. Third and finally, turning...

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...country depends upon a well-knit financialsystem. Financialsystem comprises, a set of sub-systems of financial institutions financial markets, financial instruments and services which help in the formation of capital. Thus a financialsystem provides a mechanism by which savings are transformed into investments and it can be said thatfinancialsystem play an significant role in economic growth of the country by mobilizing surplus funds and utilizing them effectively for productive purpose.
The financialsystem is characterized by the presence of integrated, organized and regulated financial markets, and institutions that meet the short term and long term financial needs of both the household and corporate sector. Both financial markets and financial institutions play an important role in the financialsystem by rendering various financial services to the community. They operate in close combination with each other.
FinancialSystem
The word "system", in the term "financialsystem", implies a set of complex and closely connected or interlined institutions, agents, practices, markets, transactions, claims,...

...An Overview of IndianFinancialSystemFinancialSystem of any country consists of financial markets, financial intermediation and financial instruments or financial products. This paper discusses the meaning of finance and IndianFinancialSystem and focus on the financial markets, financial intermediaries and financial instruments. The brief review on various money market instruments are also covered in this study.
The term "finance" in our simple understanding it is perceived as equivalent to 'Money'. We read about Money and banking in Economics, about Monetary Theory and Practice and about "Public Finance". But finance exactly is not money, it is the source of providing funds for a particular activity. Thus public finance does not mean the money with the Government, but it refers to sources of raising revenue for the activities and functions of a Government. Here some of the definitions of the word 'finance', both as a source and as an activity i.e. as a noun and a verb.
The American Heritage® Dictionary of the English Language, Fourth Edition defines the term as under-
1:"The science of the management of money and other assets.";
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3: "finances Monetary resources; funds, especially those...

...IndianFinancialSystem -
Functions of the financialsystem
- Provision for liquidity.
- Mobilizing and allocating the saving efficiently and effectively.
- Monitoring the performance of the investment.
Provide price related information.
- Helps in the creation of financial structure that lowers cost of transaction.
- Helps in the process of financial deepening and broadening.IndianFinancialSystem Broadly divided under 2 heads
- Organised
- Unorganised
Organised in the sense it contains
- Regulators like MoF, SEBI, RBI, IRDA
- Financial Institutions
- Financial Instruments
- Financial Services
Urorganised Contains
- Money lenders
- Local Bankers
- Traders
- Landlords
- Pawn Brokers too,
Now what is known to be financialsystems,
They are business organisations serving as a link between savers and investors and help in credit allocation process. They provide three transformational services
- Liability, asset and size transformation
- Maturity transformation.
- Risk transformation..
Fianncial Markets
what is that -
It is a mechanism for trading of financial product under a policy framework. Main participant are borrowers, lenders and financial intermediaries.
Their important...

...﻿The Impacts of Global Financial Crisis
Financialsystems can contribute to economic development by providing people with useful tools for risk management, such as credit for productive investments, instruments for saving and insurance, and payments services. At the same time, when financial institutions fail to manage the risks they retain, they can create severe financial crises with devastating social and economic effects, especially for the world’s most vulnerable people.
Crises can hit hard the weakest members of the society, particularly the poor, elderly, young, and women, who are not well-equipped to cope with the consequences of rising prices, eroding savings and asset values, loss of jobs, and reduction in core public services, such as social welfare, health care, and education.
The global financial crisis that has shaken the world economy since late 2007 has transformed the lives of many individuals and families beyond imagination. The bankruptcy of a US investment bank, Lehman Brothers, in 2008 turned a severe credit crunch into the worst financial crisis since the Great Depression, resulting in an unprecedented dislocation in financial markets and damaging stability and confidence in many advanced financialsystems.
The unprecedented pouring of financial support from national governments and...

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The FinancialSystem
MULT- UB.0027.01
Integrating Global Economics, Politics and Markets
In a Historical and Contemporary Context
Fall 2014 Profs. Roy C. Smith and Ingo Walter
M-W 11:00 – 12.15 T/A: Ryan Lloyd, prl252@stern.nyu.edu
Room: 5-90
Course Description:
Recent global financial turbulence has demonstrated both how important the financialsystem is to the world economy and how complex it is.Financialsystems are centered on key institutions, instruments and markets. But they also involve governments, public policy and regulation. They span the globe from the US, the EU and Japan to Russia, China and the Emerging Markets. In critical ways, country-level financial architectures are integrating to form a more seamless, high-performance whole. This is good for efficiency, innovation and growth, yet it also amplifies problems during times of crisis.
This course provides students with a broad understanding of (i) How the global financialsystem works and what purposes it serves, (ii) What the major elements are and how they operate, and (iii) What risks and challenges the global financialsystem creates for individuals, business firms and policymakers.
In seeking to achieve these objectives, the course provides a perspective that helps students understand and make the...

...﻿
Contents
1. Introduction
The financialsystem is composed of financial institutions, financial instruments, financial markets and financial services to boost transactions for goods and services as well as financial transactions. The purpose of the financialsystem is to move funds from surplus units to deficit units by a range of institutions and instruments. It channelizes the savings and mobilizes them into the productive activity and therefore affects the pace of economic development. Furthermore, the financialsystem provides price information to help coordinate decentralized decision-making in economic sector as well as to control risk or manage uncertainty of investments, and also reduce the incentive problems during financial transaction (Robert & Bodie 1995). Moreover, the financial institutions consist of depository financial institutions, contractual savings institutions, investment banks and merchant banks, finance companies as well as unit trusts (Viney & Phillip 2012).
In this essay, there are two countries had been selected which are Hong Kong and Malaysia. The purpose is to compare and contrast the financialsystem of Hong Kong and Malaysia using institutional approach as well as describe the impact and...

...FINANCIAL MANAGEMENT ASSIGNMENT ON INDIANFINANCIALSYSTEM &amp; SOURCES OF LONG TERM AND SHORT TERM FINANCES
SUBMITTED BY,
PREMJITH.A
P10144
PGDM 2010-12
INDIANFINANCIALSYSTEM
The financialsystem in india refers to the system of borrowing and lending of funds or the demand for and the supply of funds of all individuals, institutions, companies and of the government. Commonly the Indianfinancialsystem is classified into:
* Industrial finance: funds required for the conduct of industry and trade
* Agricultural finance: funds needed and supplied for the conduct of agriculture and allied activity
* Development finance: funds needed for development; actually it includes both industrial finance and agricultural finance
* Government finance: relates to the demand for a nd...

...THE FINANCIALSYSTEM – NATURE, EVOLUTION AND STRUCTURE A financialsystem is an integral part of a modern economy. An effective system of payment for goods and services enables huge production and the specialization of labor in the economy. The word „system‟ means an ordered, organized and comprehensive assemblage of facts, principles or components relating to a particular field and working for a specified purpose. But the word system in the term „financialsystem‟ represents a set of closely held financial institutions, financial services and financial instruments or claims. Capital formation in any country is carried out through the various components of the economy. These components are different in their nature, role and functions but finally work as interrelated sub-parts of a structure for the development of the economy. This arrangement of financial institutions, markets and the instruments is called the financialsystem of a country. Hence, the financialsystem of a country can be defined as a set of organizations, instruments, markets, services and methods of operations, procedures that are closely interrelated with each other. The financialsystem can also be explained as a methodical arrangement in...

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